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Massachusetts Prompt Pay Act – Critical Decision

The Massachusetts Supreme Judicial Court has issued a decision clarifying payment obligations when there is a dispute between owner and contractor or between contractor and subcontractor. In short, if there is no timely rejection of the requisition/i… Read More
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Proof that New York’s Labor Law is Broken

Project owners, contractors, subcontractors and insurers would all agree – the New York Labor Law is an unreasonable transfer of safety risk away from those who are most responsible for safety. Only the plaintiffs’ bar would disagree. We now have… Read More
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Insurance Policy Did Not Cover Preemptive Measures to Avoid a Larger, Covered Loss

This is a non-construction case that will impact construction parties. The Massachusetts Supreme Judicial Court has held that costs incurred by an insured in order to prevent greater losses are not covered by insurance, even though the greater losses… Read More
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Claims Based on General Contract Obligations “Sounded in Negligence” and Were Thus Barred by the Statute of Repose

A project owner has learned that claims based on shoddy work, as opposed to violation of a specific technical requirement, will be deemed to “sound in negligence” and be subject to the statute of repose. In Massachusetts, the statute of limitatio… Read More
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Federal Arbitration Act Exclusion Does Not Apply to Local Delivery Drivers

Local delivery drivers for Postmates must arbitrate their wage-related claims, per the First Circuit Court of Appeals. The Court ruled against a purported coalition of couriers, holding that the exemption from the Federal Arbitration Act for “worke… Read More
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Court Order Extending Deadlines Due to COVID Did Not Apply to Mechanic’s Liens

After the onset of COVID-19, the Massachusetts Supreme Judicial Court extended court deadlines in a series of four orders. Any deadline “set forth in statutes or court rules” falling between March 17 and June 20, 2020 was tolled, or extended, to… Read More
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Owner Need Not Respond to Contractor’s Claims Within Any Timeframe

Contractors often face strict or limited notice periods, in which to advise the project owner of a claim or issue. Some contracts even include forfeiture provisions, where the contractor’s failure to give timely notice acts to nullify the claim. Bu… Read More
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Massachusetts Appeals Court Enforces Prompt Pay Act Protocol

In a closely-watched, hotly-disputed case, the Massachusetts Appeals Court has enforced critical elements of the state’s prompt pay act (PPA). As a result, the contractor was entitled to judgment against the project owner for the amounts not paid,… Read More
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Waiver of Arbitration Right Does Not Require Prejudice

The U.S. Supreme Court, in a unanimous decision, has held that waiver of the right to arbitrate should not be based on prejudice to or detrimental reliance by the party opposing arbitration. This will significantly affect the ability of a party to co… Read More
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Limitation of Liability (and Consequential Damage Waiver) Clause Did Not Bar Claim for Bad Faith

Limitation of liability clauses have become more common in construction industry contracts over the past 10-15 years. Such clauses are quite common in design contracts. It is also common for a limitation of liability clause to refer to multiple poten… Read More
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